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Tip for settling manufacturing variances to cost based CO-PA

Here's a tip for settling manufacturing variances to cost based CO-PA.

When using cost based CO-PA, manufacturers want as much detail as possible in contribution margin reports. When settling manufacturing orders, utilize the PA Transfer Structure to assign the settlement variance categories to CO-PA vale fields. The PA Transfer Structure assigns the variance category and the cost elements of origin to a specific value field. By leveraging cost element groups, we can provide more details on the origin of the variance. For example, to post labor quantity variance and material quantity variance to distinct value fields: create two rows in the structure. Create a row for the cost element group identifying material costs origin and another for the cost element group identifying labor costs origin; assigning the input quantity variance category QTYV to both. In this way, we can post variances from consumption of materials to a different value field than variances from consumption of labor. The PA Transfer Structure is then assigned to the settlement profile of the order type, and the checkbox for settlement to CO-PA is selected. When variances are calculated and the settlement has posted, reports in cost based CO-PA can now display the variance amounts separately.

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Sunday, 01 August 2021
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